Potential Yearn rival Convex Finance surpasses $ 1 billion in total


As much of the market reels from a devastating pullback that has dragged DeFi’s closely watched Total Value Locked (TVL) down from its all-time highs, a log is shaking off macro weight and lifting the TVL leaderboard.

Ethereum-based Convex Finance ($ CVX) cracked $ 1 billion in TVL today, climbed to $ 1.14 billion, and briefly cracked the top 20 by size, according to DeFilama.

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Convex team leader “c2tp” told Cointelegraph in an interview that the team was overwhelmed by the support.

“We are overwhelmed with the amount of support our platform has received. We are very grateful to everyone who shares our vision. The community exposure was the most important factor as well as a sign of support from the Curve team, ”they said.

Convex is designed as an optimizer for the Curve protocol, a platform that enables the exchange of assets similar to those between different stablecoins or ETH and Lidos. Its CRV token has a timelock feature that allows users to use CRV in exchange for veCRV for four years, allowing users to “boost” the rewards for betting in curve pools.

“We want to extrapolate the complex things away, such as how much veCrv is needed to increase how much liquidity. But we also want to be open enough to show everyone what’s going on behind the scenes and the benefits we offer, ”said c2tp about Convex’s services. “In addition to veCrv for balancing out liquidity, blocking a token for four years can be a big step for most people. We hope our system will give confidence in the value of our tokens so that you can join the ecosystem and still stay liquid. “

The start was not without drama, however. Some observers have claimed that the project poses a threat to Yearn.Finance as Convex optimizes the Curve positions, whose return vault relies heavily on Curve.

However, c2tp turned down this notion, saying that Yearn and Convex complement each other in an ultimately positive DeFi ecosystem:

“We don’t really see it as direct competition. There are different platforms with different goals. There is also much to be gained when platforms are integrated with everyone as part of the larger Defi system. We encourage everyone to use our offer and build on it. Defi is not a winner who needs everything, but something that becomes stronger when all the parts fit together. “

Likewise, a representative from Yearn dismissed the notion that the protocols conflict, noting that much of the Convex TVL is delegated by Yearn.

“We love to see it,” said Weaver, a member of Yearn’s growth team, of Convex’s success. Many in cryptocurrencies spend their time looking for ways to pit tribes against each other, but zoom out today and you will see 19 million additional veCRV boosting Yearn vaults thanks to Convex. You asked if this was a vampire attack on Yearn. I don’t know what the opposite of that is, but this new Lego is pumping buoyancy into Yearn. “